Analysts speculate on PSI-7977 possibly receiving earlier than anticipated FDA approval...

From Forbes.com

Associated Press
Ahead of the Bell: Pharmasset shares rise
Associated Press, 06.03.11, 09:02 AM EDT

NEW YORK -- A Citi Investment Research analyst said Friday that Pharmasset Inc.'s leading hepatitis C drug candidate could be approved sooner than expected, and he nearly tripled his price target on Pharmasset shares.

Shares of the Princeton, N.J., company rose $3.33, or 3.3 percent, to $104.20 in pre-market trading.

Analyst Yaron Werber said the drug candidate, which is designated PSI-7977, could be approved as soon as mid-2014 to treat two relatively rare types of hepatitis C.

Werber previously thought PSI-7977 wouldn't reach the market until late 2015, and he raised his target on Pharmasset ( VRUS - news - people ) to $200 per share from $71 to reflect the chances of an earlier approval, which would boost sales of the drug.

Werber said PSI-7977 could get to the market sooner if it is approved to treat hepatitis C genotypes 2 and 3, which make up a minority of cases. In late May, Pharmasset started a mid-stage clinical trial of PSI-7977 as a treatment for hepatitis C genotypes 1, 2, and 3. Genotype 1 makes up about 70 percent of hepatitis C diagnoses. Werber said he thinks the drug "will have solid data and will be one of the dominant drugs in hepatitis C."

The analyst said Pharmasset should present study data in November and should start late-stage studies in early 2012. He thinks the company will be profitable in 2016.